What's in it FOR HIM personally? The Leon's are owed around $2.5 million at the minimum. If they are ever to get that money out of this they will need to get the share structure and narrative viable again in my opinion. This is also what Leonite needs as well if they are to be made whole.
The Leonite June note is secured by all assets of Ethema (GRST) and matures now in less than 6 months. I have been unable to find the "Security and Pledge Agreement" described in the 8K under "Related Documents" for details. The revelation that the note is secured by all assets of the company didn't come until the Q2 filing release.
What also was revealed in the Q2 filing was the amount owed to Ethema (GRST) by the ARIA (AKA Evernia) subsidiary. Previously the statement read "...without any contribution required by the Seller." Now we see that there is $989,725 as of June 30th owed to the Ethema (GRST). So there is more money for Leonite to go after and worth much more than the heavily marked up June note. What stake holders here have the stronger claims is the question. Leonite with a little over $3 million in secured debt, series "N" note holders with $3.9 million fairly unsecured it would appear, the Leons with $2.5 million, other smaller players... some notes including the series "n" notes now in default. Maybe what is going on behind the scenes is preparing for when this gets in front of a judge, who knows. The one person who does know and isn't communicating is the CEO.
ETHEMA HEALTH CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. Acquisition of subsidiaries
...The Company agrees to advance up to $1,100,000 under the Loan Agreement for the funding of the operations of ATHI as required without any contribution required by the Seller. As at the date of acquisition, July 1, 2021, the Company had advanced Evernia $1,140,985, subsequent to July 1, 2021 to June 30, 2022, Evernia had repaid $151,260. The balance owing to the company at June 30, 2022 was $989,725.
Leonite Fund I, LP
Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby the convertible promissory notes entered into with Labrys Fund LP on May 7, 2021, with. A principal outstanding of $341,000, and on June 2, 2021 with a principal outstanding of $230,000 and accrued interest thereon of $25,300, were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375, including an OID of $149,075. The Note matures on March 1, 2023, and bears interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%.
The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.
...The obligations of the Borrower under this Note are secured pursuant to the terms of the security and pledge agreement (The "Security and Pledge Agreement" and collectively the Purchase Agreement, the "Related Documents"...
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